The prison company CoreCivic has sold two of the largest immigration detention facilities in California to the U-S Department of Homeland Security.
CoreCivic sold its Otay Mesa Detention Center in San Diego County and its California City Detention Facility in Kern County in a deal that closed July 2nd.
The company reported the news in a letter to its investors on Monday that also confirmed CoreCivic is set to rake in around $1.2 billion from the deal.
Up until now, the company owned and operated the facilities on a contract with the federal government.
An unsigned Immigration and Customs Enforcement memo says the new model would “allow ICE to create an efficient detention network by reducing the total number of contracted detention facilities in use.”
CoreCivic also disclosed it’s having ongoing talks with DHS about selling the federal government additional detention facilities.